• Record first quarter sales of $775 million, up 31% over prior year driven by strong demand
• Operating margin of 20.9%, adjusted operating margin¹ of 20.4% up from 18.7% last year
• Record GAAP diluted EPS of $0.77, adjusted diluted EPS¹ of $0.76 up 58% over Q1 2021
• Continued execution on capital allocation priorities, including more than 5 million shares repurchased in the quarter
• Sustainability-Linked Loan launched during the first quarter reinforcing strong commitment to ESG targets

Montreal, Wednesday, May 4, 2022 – Gildan Activewear Inc. (GIL: TSX and NYSE) today announced results for the first quarter ended April 3, 2022.

“Record results in the first quarter and a strong start to 2022 reflect the impact of Gildan's Sustainable Growth (GSG) strategy,” said Glenn J. Chamandy, Gildan president and CEO. “Our team’s clear focus on capacity driven growth, innovation and ESG, leveraging our world class, vertically-integrated manufacturing platform, is putting us in a strong position to service customer demand while effectively managing inflationary cost pressures."

During the first quarter, we generated sales of $775 million, up 31% over the prior year. We maintained strong gross margins and combined with strong SG&A performance delivered operating margin of 20.9%, and adjusted operating margin of 20.4% which was up 170 basis points versus last year. This was achieved despite the non-recurrence of a one-time COVID-related cotton subsidy which benefited gross margin in the first quarter last year by 300 basis points. Record sales, together with strong operating margin expansion, translated to GAAP diluted EPS of $0.77, and adjusted diluted EPS of $0.76, up 54% and 58%, respectively, compared to last year. During the first quarter, we consumed $86 million of free cash flow¹, reflecting higher working capital investments, including seasonal increases. Consistent with our capital allocation priorities, we continued to be active on our share buyback program, repurchasing approximately 5.1 million shares in the quarter or 3% of float. Our net debt¹ position at the end of the quarter increased to $829 million and our net debt leverage ratio¹ of 1.0 was at the low end of the Company's target range.

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